26
| Date post: | 26-Jan-2015 |
| Category: |
Business |
| Upload: | self-creation |
| View: | 102 times |
| Download: | 0 times |
Amir Saif [email protected]
We will walk through the tools and strategies we need to
survive the current downturn and to improve our competitive
position
Amir Saif [email protected]
Until recently, most senior executives regarded managing cash flow and
liquidity as tactical functions, a mundane set of activities left to
administrative managers.
Amir Saif [email protected]
As the global financial crisis has choked off credit, cash
management has become strategic.
Amir Saif [email protected]
Companies with weak operating cash flows are finding it more
difficult to secure outside funding, just when flows are harder than
ever to generate.
Amir Saif [email protected]
A critical first step in such cash-flow discipline is adopting a 13-week tool that shows what's flowing into and out of each business segment on a
weekly and monthly basis.
Amir Saif [email protected]
The idea is to capture real-time information on flows and
compare them with budgeted amounts.
Amir Saif [email protected]
Persistent variances signal fast-emerging problems in product lines,
customer channels and vendor relations problems that can be addressed before it is too late.
Amir Saif [email protected]
Cash flow Plan
• 13 Week cash flow tool builds a short term view of how cash flows through the business
• It also provides a foundation for long-term downside scenarios that trigger action
Amir Saif [email protected]
Cash flow Plan
13 Week cash flow tool builds a shortTerm view of how cash flows throughthe business
It also provides a foundation for long Term downside scenarios that triggeraction
• Give cash position on a weekly basis
• Tracks cash inflows and outflows directly through bottom-up construction
• Provides the ability to report actual vs budget variances each week
• Permits situation specific forecasting, including store, selling lines of business and reducing headcount.
• Reveals how much cash is necessary to preserve and protect the business under different conditions
• Identifies choke points and opportunities to improve processes
• Highlights differences in efficiency between product lines, customer channels and vendor relationships
• Provides a powerful understanding of which rivals are vulnerable, which customers are strongest and which vendors might not survive.
Amir Saif [email protected]
This plan can show how much cash need to protect the business under different
conditions.
Amir Saif [email protected]
Many senior executives have also begun to model downside
scenarios informed by cash flow and liquidity measures.
Amir Saif [email protected]
From marketing standpoint, the desk was a big win. But from a cash flow perspective, it was a
nightmare.
